The Development Bank of Southern Africa (DBSA), which helped deliver R26.6 billion infrastructure delivery in the year through March 31 with R8.2 billion in catalytic funding , has remained strongly capitalized and capable of fulfilling its development mandate.

The bank said in its annual report on Friday that its liquidity and capital positions were strong even though Moody’s had downgraded its credit rating a notch below the government, and the bank’s long-term issuer rating to Aa3. .za, instead of

“Despite the disruption in the local fixed income market, DBSA has been successful in raising funds from international development finance institutions as well as international and local commercial banks. “

The bank said that from its perspective, the major impact of the Covid-19 pandemic was the disruption of the bond market and a sharp increase in the credit risk associated with the development loan portfolio, particularly exposures to certain resource-exporting countries.

Nonetheless, loan portfolio repayments reached a record R19 billion, R11 billion in loan repayment principle and R8 billion in interest. Loan disbursement activities amounted to R13.5 billion, a decrease of about 14% from the previous year. The bank’s total debt financing has declined to R59 billion as of March 31, 2021, from R61 billion as of March 31, 2020.

The cash position and cash equivalents increased from R3.5 billion as of March 31, 2020 to approximately R9 billion as of March 31, 2021, representing a 160% increase in cash and cash equivalents of a year over year.

The debt ratio, including callable capital of R20 billion, improved to 101% from 108%, well below the bank’s regulatory cap for the bank’s debt ratio of 250%.

This on-balance sheet provision for expected credit losses (impairment provisions) increased 12% to R11.4 billion, but compared to the previous year, the provision for credit loss (write-downs) charge in the account profit fell significantly by 68% to 1.2 billion rand.

The gross non-performing loan ratio fell to 7.7% from 8% as at September 30, 2020, but increased to 7.2% in March 2020.

The bank’s total assets remained at the R100 billion level, despite loan repayments of R19 billion, offset by currency movements of R5 billion and new disbursements of R13.5 billion. .

The bank has made 925 million rand in prepared and committed projects and has been able to unlock infrastructure in underfunded municipalities amounting to 1.4 billion rand.

Projects approved for Broad-based Black Economic Empowerment Entities for Project Readiness Funding amounted to R 2.1 billion. Some 6,909 learners benefited from 11 newly built schools and 33,125 learners benefited from 51 renovated schools. Interventions at the municipal level made it possible to carry out 13 projects.

The bank is also, for example, heavily involved in moving towards a more sustainable energy mix in South Africa and has, to date, provided funding of some R18 billion in rounds 1 to 4 of the program. supplying independent power producers with renewable energies, as well as R13 billion to BEE parties and local community entities involved in these projects.

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